MGMT 4 Case Study: ESET's Journey to Global Antivirus Leadership

This case study examines ESET's remarkable journey from a small Slovakian firm to a global leader in the antivirus software industry. The analysis focuses on the company's strategic decisions, particularly its application of the resource-based view, which highlights how ESET leveraged its intangible resources, such as its brand reputation, innovative culture, and skilled workforce, to achieve a competitive advantage. The case explores the challenges ESET faced, including operating within a communist regime and later expanding into international markets, while also examining the company's approach to product development, market expansion, and its ability to adapt to evolving cybersecurity threats. Furthermore, the case study provides insights into ESET's organizational culture and how it contributes to the company's success in a dynamic and competitive global market. The company's strategic focus on establishing subsidiaries, particularly in the United States, to overcome any perceived barriers related to its Slovak origin is also discussed. The case study concludes by highlighting the critical role of leadership and managerial decisions in fostering continuous growth and achievement within a complex business environment.

Running Head: MANAGEMENT 0
GLOBAL BUSINESS

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Since its incorporation, ESET has achieved a great number of successes and it is
related with company top level management decisions, positive desires and creative team of
personnel. Trnka and Pasko, instigator of ESET worked persistently within the un-anticipated
environment of the country signifying restricted potential for success. Furthermore, the
founders also plan various acquisitions and take over such as of Czech security company
Setrnet at the time of split up of nation and slow down of business performance with also an
aim to expand their organisation in other nations as well.
In addition, the actual growth of the company starts from the year 2000 where the
company receive various opportunities to spread their business due to increasing
cybersecurity threats and in 2002, Deloitte also added ESET to its ranking of fastest growing
company. In the first 15 years, the company grew organically and this time is high for the
company to reach this point, however, ESET expands its business under leading IT markets
and goes up with a greater success while receiving several significant awards right the point.
Ultimately, to be recognised as prominent international player in the antivirus
software sector, it needs a higher level of ambition and confidence with also greater
managerial decisions. These practices are only representing a small fraction of their efforts in
the dynamic and complex business environment, as it depends upon wants and drive of both
employees and managers within the firm to make the business towards constant growth and
achievement.
According to Darcy et al (2014), the resource-based view is a theoretical framework
and perspective for viewing organisational potential for building a competitive advantage and
for sustaining long-term success. It is apparent that in the introductory phase of the business,
the ESET founders did not have much resources and moreover, it is also stated that in a living
place in the house, labelling, recording and packaging had been done. It shows that there is
very low prospect for the ESET to move to a bigger scale, however, the company has

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managed to do so with constant efforts and determination. In relation with resource-based
view, the company achieved success in various approaches like as of communist regime in
Czechoslovakia, there were various complex and dynamic variables in the environment
moving on together with confined resources in the country. Furthermore, the company have
to expand its business in the local markets as moving goods to the other nations was not
possible due to Velvet revolution, however, ESET achieved success while countering with
various sorts of risks and emphasis on the strengths of their antivirus software to attract both
customers and other businesses. The company goodwill (intangible resource) also help the
company in its growth of business performance as of its trustworthiness and effectiveness.
The brand name of the company got famous when in 1998, ESET won the first Virus
Bulletin award as it also draws the attention of global users as well as foreign distributors.
This really leads the company to achieve competitive advantage and edge with the other
players in the same industry. In addition, ESET also invests highly in the research and
innovation so as to be aware about new forms of viruses and malware and their sources. The
product development and expansion is a part of company strategic management process
which also states about a firm achieve competitive advantage through its product and
business strategy under a particular corporate structure and industry forces (Schilke, 2014).
ESET case is evidently an illustration of this approach. The next competitive advantage under
resource based view that differentiates company from other organisation is its people and
culture. The company has maintained significant trust within the organisation and with
appreciating its people needs, the company drives its individuals towards mission of the
organisation. Halme & Korpela (2014) also stated that organisation culture as an intangible
resource comprises of trust, effectiveness, innovation and inspiration.
When businesses from developing economies market their products internationally,
they have to rely upon a dependable corporate structure. ESET undertakes various innovative
practices and owns a holistic view towards the industry and market forces. The company can
gain success internationally when its products are desired in the market and its organisation

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culture and products are challenging to match. In addition, companies planning to expand in
the other markets may confront political stress in association with respective regulatory
bodies. Finalising location is also a challenging task for an organisation planning to sell the
products in the respective market, as it can result in significant benefits. Taking an example
of ESET, the company set its position in the United States and then plan to increase its
footprints in foreign countries.
The institution-based view recommends necessary propositions such as firms and
managers rationally follow their interests and make choices under institutional constraints
and organisations from developing economies can overcome negative nation-of-origin by
restraining the origin or conceal it totally. It can be attained in many ways, however, it is
greatly realized with subsidiaries or marketing. The Slovak origin of the organisation still
posed a psychological barrier to prospective international purchasers and as result, restrained
the sales growth in international marketplaces. Rather than marketing the product, the
company plan to move on with subsidiaries as there is high cost associated to commercials
for stimulating how population perceive the product origin. ESET target the United States for
establishing its subsidiaries and at the same time showcase, theirs produces as being linked to
America. It benefits the company to tap into greater market segment never intended before by
the founders or other Slovakia firm in the software industry.

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References
Darcy, C., Hill, J., McCabe, T. J., & McGovern, P. (2014). A consideration of organisational
sustainability in the SME context: A resource-based view and composite
model. European Journal of Training and Development, 38(5), 398-414.
Halme, M., & Korpela, M. (2014). Responsible innovation toward sustainable development
in small and medium‐sized enterprises: A resource perspective. Business Strategy and
the Environment, 23(8), 547-566.
Schilke, O. (2014). On the contingent value of dynamic capabilities for competitive
advantage: The nonlinear moderating effect of environmental dynamism. Strategic
management journal, 35(2), 179-203.